FTX, Bahamian FTX DM reach agreement on info sharing, disposition of property, assets
The sides had been at odds over numerous issues and have agreed to keep working on the remaining open questions they face.
The FTX Debtors, made up of FTX and its affiliated debtors, and FTX Digital Markets (FTX DM), the Bahamian subsidiary of FTX, announced Jan. 6 that they have reached a cooperation agreement regarding the FTX Debtors’ Chapter 11 bankruptcy case in Delaware and the provisional liquidation of FTX DM in the Bahamas.
Under the agreement, the parties will “share information, secure and return property to their estates, coordinate litigation against third parties and explore strategic alternatives for maximizing stakeholder recoveries.” They have also set parameters for cooperation in each other’s court cases.
In addition, the parties agreed the joint provisional liquidators will take the lead in the disposition of real estate in the Bahamas and confirm digital assets “under the control of the Securities Commission of the Bahamas in the Fireblocks account previously disclosed by the FTX Debtors.” As of the agreement:
“The parties are each comfortable the digital assets have been appropriately safeguarded by the Securities Commission as restructuring discussions continue.”
The Bahamian Supreme Court ordered all FTX DM digital assets transferred to a wallet owned by the Securities Commission of the Bahamas on Nov. 12.
FTX Debtors CEO and Chief Restructuring Officer John Ray said, “There are some issues where we do not yet have a meeting of the minds, but we resolved many of the outstanding matters and have a path forward to resolve the rest.”
FTX’s US debtors, who are in Chapter 11 bankruptcy, and the joint provisional liquidators who are overseeing the winding up of FTX Digital Markets (FTX DM) in The Bahamas are once again working to reach an agreement over access to the exchange’s data. https://t.co/0ftWQesqni
— Nassau Guardian (@GuardianNassau) January 5, 2023
The agreement still requires the approval of the United States Bankruptcy Court in Delaware and the Supreme Court of The Bahamas.
The U.S. and Bahamian sides have conflicted over a number of issues that included allegation of favoritism, withholding of information and even that Bahamian authorities asked former FTX CEO Sam Bankman-Fried to mint new tokens that they would control.